“With the bulk of Iranian crude now heading to Asia, however, the main impact of the new EU measures will likely be on the country’s financial sector,” the IEA said. Iran’s finances have been drastically stretched since US and EU sanctions more than halved its oil exports compared to last year, undermining its budget and leading to a spike in inflation and a sharp weakening of its currency. The sanctions are part of a stand-off between the West and Iran over Islamic Republic’s nuclear programme.

The EU further broadened the sanctions against Iran’s energy and banking industries in October in a bid to bring Iran back to the negotiating table. The IEA said Iranian oil output rose by around 70,000 barrels per day (bpd) to 2.7 mllion bpd (mbpd) in October. Iranian exports jumped to 1.3 mbpd from 1.0 million seen in the two previous months. “China and South Korea appear to account for the lion’s share of the increase in Iranian imports,” the IEA said in its monthly report.

The jump in imports could have brought Iran an additional $900 million last month, according to Reuters calculations based on the price for its oil of $100 a barrel.